Budget 2026: Key announcements for common man — From STT hike on F&O, ITR filing relaxations and more

Budget 2026 announcements: Finance Minister Nirmala Sitharaman on Sunday, 1 February, presented the Union Budget 2026, which introduced key reforms for the common man.

Budget 2026 focuses on students, farmers, women, healthcare workers, investors and taxpayers.

The Union Budget 2026 proposes reforms that will benefit the common man, while also introducing some taxes that will affect future and options (F&O) traders.

Here are the key announcements for common man in Budget 2026

Budget 2026: Farmer income in focus

Nirmala Sitharaman proposed a Coconut Promotion Scheme aimed at increasing production and improving productivity to boost India's competitiveness in coconut cultivation. She also announced a dedicated programme for Indian cashew and cocoa, with the objective of making India self-reliant in raw cashew and coconut production and processing, while enhancing export competitiveness.

Budget 2026: ITR revisions

Individual taxpayers will get more relaxations in filing their income tax returns. Sitharaman proposed extending the deadline to file revised ITRs to 31 March instead of the current 31 December.

Updated ITR filing also got a revamp in Budget 2026. “As an additional measure for reducing litigation, I propose to allow taxpayers to update their returns even after reassessment proceedings have been initiated, at an additional 10% tax rate over and above the rate applicable for the relevant year. The assessing officer will then use only this updated return in his proceedings,” the FM said.

STT hiked on future and options

Sitharaman proposed an increase in the Securities Transaction Tax (STT) on derivatives, aimed at curbing excessive speculation in the F&O segment.

She announced that STT on futures contracts would be raised to 0.05% from 0.02%. “STT on options premium and exercise of options are both proposed to be raised to 0.15% from the present rate of 0.1% and 0.125% respectively.”

Budget announcement for students

Sitharaman proposed reducing the Tax Collection at Source (TCS) rate to 2% for education purposes under Liberalized Remittance Scheme (LRS) as well as on the sale of overseas tour packages.

The government will also set up an 'Education to Employment and Enterprise' standing committee to recommend measures that focus on the growth of the services sector, the FM announced.

As part of the education push, the FM also proposed to set up a new National Institute of Design in eastern India, as well as five university townships near major industrial and logistics corridors.

Sitharaman further proposed the construction of a girls' hostel in every district of the country and the setting up of community-owned ‘She MARTS’.

Banking reforms in Budget 2026

Budget 2026 proposes a high-level committee to review the banking sector. Public sector NBFCs like PFC and REC will be restructured to improve efficiency.